Senate Republicans have released a revised 630-page Clarity Act that adds federal oversight for certain crypto trading protocols five days before a scheduled Sept. 15 procedural vote.

Sen. Cynthia Lummis said on Sept. 10 that Republicans had incorporated more than 114 provisions requested by Democratic senators during negotiations. The Wyoming Republican described the new version as a bipartisan product, although no Democratic senator had publicly endorsed the revised text when it was released.

The Senate vote will determine whether lawmakers can begin formal debate on the crypto market structure bill. It is not a final vote on passage. Republicans need enough Democratic support to reach the Senate’s 60-vote procedural threshold because they control 53 seats.

Clarity Act revision targets controlled trading protocols

New language in the Clarity Act establishes a category called a “non-decentralized finance trading protocol.” The draft applies the term to people or coordinated groups that possess direct or indirect authority to control or materially change a protocol’s functions, operations or consensus rules.

Protocols covered by the definition would need to register with the Commodity Futures Trading Commission. The bill directs the CFTC and the Treasury Department to develop implementing rules, leaving the agencies to determine how the standard would work across different technical and governance arrangements.

The provision seeks to separate systems operating without a controlling party from platforms marketed as decentralized while retaining identifiable management or upgrade authority. 

Questions about control have remained central to the Senate debate over DeFi regulation. Lawmakers have disagreed over whether software developers, interface operators and governance participants should face financial compliance duties when they do not take custody of customer assets.

The latest text limits its DeFi provisions to spot and cash digital commodity transactions. Lummis said the clarification responds to concerns from tribal governments about whether the legislation could affect prediction markets, which may involve separate federal and state legal questions.

Credit unions received further clarification on permissible digital asset activity, according to her statement. Public summaries available Thursday did not identify every provision changed in the full draft.

Ethics language remains a barrier to Democratic votes

The revised Clarity Act retains an ethics provision restricting public officials, government employees and their spouses from issuing or sponsoring digital assets. Enforcement authority would remain primarily with the Justice Department, while the restriction would expire in January 2029.

President Donald Trump accepted the provision in July, but Democratic lawmakers called it inadequate. Their objections have centered on the scope of the covered activity, the limited enforcement mechanism and the provision’s expiration date.

Trump and members of his family have financial connections to World Liberty Financial and the TRUMP memecoin. Critics say legislation regulating crypto markets should contain stronger restrictions governing digital asset interests held by senior federal officials.

A separate ethics proposal developed by Democratic senators and Republican Sen. Thom Tillis sought stronger terms. The Sept. 10 revision did not adopt major elements of that alternative, according to a report from Politico.

No Democratic support had been secured for the latest version at publication time, Politico reported. The lack of public commitments leaves Republicans short of the votes required to open debate if the chamber divides along party lines.

Lummis said the bill would give the digital asset industry a durable statutory structure that could not be changed as easily as agency rules following a new presidential administration. Her statement represents the sponsors’ position on the legislation’s value and permanence.

Stablecoin rewards and bank deposits remain disputed

Banking groups and crypto companies continue to disagree over stablecoin rewards. Banks contend that rewards paid on stablecoin balances could encourage customers to move money from insured accounts, reducing deposits used to support lending.

Crypto companies argue that transaction-based incentives differ from interest paid on bank deposits. Earlier Senate language prohibited payments based solely on holding a stablecoin while permitting rewards connected with payments, loyalty programs and other qualifying activity.

The disagreement has generated lobbying campaigns in senators’ home states. Reuters reported that the Independent Community Bankers of America had arranged meetings between local bankers and senators during the August recess.

Stand With Crypto, an advocacy organization backed by Coinbase, said its supporters contacted members of Congress nearly 50,000 times during August. The group reported holding events and publishing opinion pieces across several states to support passage.

Some Republicans have raised concerns alongside Democratic critics. Sens. James Lankford and Mike Rounds have questioned whether the bill could allow certain digital tokens to compete with traditional deposits, Reuters reported.

Democrats have cited separate concerns involving money laundering controls, consumer protection and market integrity. The revised protocol language addresses one part of the illicit-finance debate, but its release did not produce an announced agreement on the remaining disputes.

The Sept. 15 vote only opens floor debate

Senate Majority Leader John Thune scheduled the procedural vote for Sept. 15, one day after senators return to Washington. The scheduled vote requires 60 senators to support moving the Clarity Act into floor consideration.

A successful vote would permit debate and open the bill to amendments. Senators could seek changes to the ethics provision, stablecoin reward rules, DeFi requirements or the allocation of authority between the Securities and Exchange Commission and CFTC.

The legislation would create federal classifications for digital assets and divide oversight between the two market regulators. The CFTC would receive authority over spot markets for assets classified as digital commodities, while the SEC would retain jurisdiction over securities.

House lawmakers previously passed their version of the Clarity Act with support from members of both parties. Any changes adopted by the Senate would require the two chambers to approve identical text before the legislation could reach Trump.

Time remains limited because lawmakers are preparing for the November midterm elections. Reuters reported that crypto companies view the remaining 2026 legislative calendar as a critical opportunity, while analysts described the bill’s prospects as uncertain because of opposition from Democrats and several Republicans.

Lummis, who is not seeking another Senate term and will leave Congress in January 2027, has continued pressing lawmakers to approve the measure. In a Sept. 9 statement, she argued that the United States should set its own crypto rules instead of allowing jurisdictions such as Singapore or the United Arab Emirates to take the lead.

If the motion receives at least 60 votes, Senate leaders can proceed to debate and schedule amendment votes. Fewer than 60 votes would prevent the chamber from moving to the current bill unless leaders negotiate new terms and schedule another procedural attempt.

Sam Bankman-Fried has asked the U.S. Supreme Court to overturn his seven-count fraud conviction and approximately $11 billion forfeiture order after losing his appeal in June 2026.

CNN, which reviewed the petition filed on Sept. 10, reported that the former FTX chief wants a new trial over limits placed on evidence concerning FTX’s assets and the potential repayment of customers. He is serving a 25-year federal prison sentence imposed in March 2024.

Indian agricultural warehousing and lending company Arya.ag is testing a system to tokenize warehouse receipts for stored grain on a dedicated Avalanche layer-1 blockchain. 

Arya.ag is working with Finternet to connect grain deposits, warehouse receipts, collateral commitments and loan status through the network.

Devika Mittal, Ava Labs’ head of India, told Cointelegraph that testing was underway and said each tokenized receipt would represent ownership of the stored commodity. The companies did not disclose an expected launch date or how much grain or lending the initial deployment would cover.

Sanmesh Kalyanpur, a director at Finternet Labs, said Arya.ag’s samplers collect information about stored grain and enter it into the company’s portal. Finternet will combine farmer, commodity, warehouse and insurance information into what Kalyanpur called a “composite token” that banks can use when assessing collateral risk. 

Arya.ag stores about $2 billion in agricultural commodities across its warehouse network and supports approximately 120 billion Indian rupees (about $1.26 billion) in loans annually, according to the announcement. Its lending arm, Arya Dhan, issues about $230 million in loans each year.

The figures describe Arya.ag’s existing business and do not represent assets or loans already brought onchain.

Related: Pineapple Financial puts $1B in mortgage records on Injective

Finternet concept traces back to 2024 BIS paper

The Finternet concept was outlined in a 2024 Bank for International Settlements paper co-authored by Infosys co-founder Nandan Nilekani and then-BIS General Manager Agustín Carstens.

The paper proposed interconnected unified ledgers for tokenized assets while emphasizing the need for supporting legal and regulatory frameworks.

In January, Cointelegraph reported that the value of tokenized real-world assets on Avalanche exceeded $1.3 billion at the end of 2025, driven by loans and tokenized money-market funds. 

India expands warehouse-backed agricultural lending

Electronic warehouse receipts allow farmers and agricultural businesses to borrow against commodities held in storage instead of selling them immediately after harvest.

Arya.ag and Ava Labs said their system is designed to give lenders a shared record showing what grain is stored, who owns it, whether it is already pledged as collateral and what debt is outstanding.

The system will still depend on accurate verification of the physical commodities represented by the digital records, according to the announcement.

In 2024, the Indian government launched a 10 billion-rupee credit-guarantee program intended to encourage financing against electronic negotiable warehouse receipts, particularly among small and marginal farmers.

Magazine: 10 of the greatest unsolved crypto mysteries

An attacker exploited a flaw in email platform Brevo’s login system to access 138 client accounts, enabling a phishing email to reach roughly 347,000 Trezor newsletter subscribers and similar fraudulent messages to be distributed through accounts belonging to hardware wallet maker BitBox and crypto portfolio tracking and tax-reporting platform CoinTracking.

In a Thursday postmortem, Brevo said six accounts were used to send phishing emails, contacts were exported from 43 and 93 accounts showed no meaningful activity. The platform did not specify whether the categories overlapped. 

The attacker created a Brevo account, enabled single sign-on and invited legitimate Brevo users into the configuration. Brevo said access should have been confined to that organization, but an authorization boundary failed and granted access to every organization the invited users could reach.

The disclosure expands on warnings issued by Trezor and BitBox on Wednesday, identifying their shared provider and explaining why the emails passed normal authentication checks and appeared genuine. 

Cointelegraph reached out to Brevo for more information but did not receive a response before publication. 

Crypto firms assess potential subscriber exposure 

In a blog post, Trezor said the phishing message, titled “Critical Security Alert: STM32 Entropy Vulnerability,” contained a link to an app that requested users’ wallet backups. The company disabled the domain at the DNS level within 20 minutes, but about 2,500 people accessed the link before the takedown.

A Trezor spokesperson told Cointelegraph that “the initial email was sent to 347,000 customers,” all of whom were subsequently contacted about the risk. The company’s Brevo account stored only opt-in newsletter email addresses and no other customer data.

“Until we hear more from Brevo, we are treating all roughly 347,000 newsletter addresses as known to the attacker and possibly reusable for phishing,” the spokesperson said.

Related: Liquid Network resumes block production after $320M exploit

A BitBox spokesperson told Cointelegraph that its unauthorized email was sent through Brevo and appeared to have reached its full newsletter and tutorial list. 

BitBox said Brevo held only email addresses and language preferences. It found no evidence of compromised company credentials, downloaded contacts, lost funds or disclosed recovery phrases, but is treating the list as potentially accessed while awaiting Brevo’s logs.

Meanwhile, CoinTracking said its Brevo account distributed an email titled “Data Breach Notice: Please refresh API Keys as soon as possible.” It warned recipients not to follow the email’s links.

Magazine: 10 of the greatest unsolved crypto mysteries

US-listed spot Bitcoin exchange-traded funds (ETFs) saw another day of redemptions on Wednesday, with total net outflows of $120.2 million, according to Farside Investors data. This follows Tuesday’s $46.6 million outflow, bringing withdrawals across the first two sessions of the holiday-shortened week to $166.8 million.

The pullback largely came from ARK 21Shares’ Bitcoin ETF (ARKB), which led Wednesday’s withdrawals with $78 million. Grayscale’s Bitcoin Trust ETF (GBTC) followed with $27.2 million in net outflows and BlackRock’s iShares Bitcoin Trust ETF (IBIT) recorded $19.5 million in withdrawals. The only Bitcoin ETF to post inflows on the day was Morgan Stanley’s Bitcoin Trust (MSBT), which added $4.5 million.

Key takeaways

• Bitcoin spot ETFs recorded $120.2 million in net outflows on Wednesday, extending the week’s two-session total withdrawals to $166.8 million.
• ARKB was the dominant source of outflows, pulling $78 million on Wednesday, while GBTC and IBIT together accounted for an additional $46.7 million.
• Ether spot ETFs bounced back with $34.7 million in net inflows on Wednesday after Tuesday’s outflows.
• Solana spot ETFs reversed Tuesday’s outflow, attracting $11.2 million on Wednesday, with inflows concentrated in Bitwise’s BSOL.

Bitcoin ETFs unwind after a strong run

Wednesday’s outflows capped a brief shift in investor positioning after the funds’ recent momentum. Tuesday’s $46.6 million outflow marked the category’s first back-to-back net redemptions since a three-day outflow streak ended on Aug. 14, according to the figures cited.

Looking at the two-day window, GBTC accounted for the largest share of losses, with $92.7 million in net outflows over Tuesday and Wednesday. ARKB and IBIT recorded net redemptions of $69.9 million and $8.8 million, respectively, during the same period.

Despite the pullback, the wider context still matters for assessing whether the outflows are a reversal or a pause. The two-session decline erased roughly 4.4% of the $3.8 billion attracted during what Farside Investors data described as the funds’ strongest three-week stretch of 2026.

Since launch, Bitcoin ETFs have accumulated about $55 billion in cumulative net inflows, while combined net flows for 2026 stand at about $1.07 billion in outflows, based on Farside Investors’ reporting. The contrast highlights why even large day-to-day movements are best interpreted against long-running accumulation and the year-to-date flow profile.

Where Wednesday’s outflows came from

ETF-by-ETF flows show a clear pattern: the majority of Wednesday’s withdrawals were concentrated in a small group of funds. ARKB’s $78 million outflow was more than half of the day’s total, and the remaining majority gap was covered by GBTC and IBIT.

MSBT was the exception, adding $4.5 million to offset only a fraction of the net redemptions across the category. For traders and portfolio managers, that kind of split can signal short-term reallocations within the ETF complex rather than uniformly negative sentiment across all access points.

Wednesday’s data also followed Tuesday’s broader category outflow. Together, Tuesday and Wednesday produced $166.8 million in net withdrawals across the week’s first two sessions—an important checkpoint when evaluating whether the prior inflow streak has fully run out or whether investors are simply pacing their allocations during the holiday-shortened calendar.

Ether ETFs regain inflows; Solana flips to net buying

While Bitcoin ETFs pulled back, US spot Ether ETFs returned to net inflows on Wednesday. Ether ETFs attracted $34.7 million on the day after recording $24.3 million in withdrawals on Tuesday, leaving the group with $10.4 million in net inflows for the week.

BlackRock’s ETHB led inflows with $22.9 million, followed by ETHA with $9.7 million. The 21Shares TETH fund added $2.1 million, and the remaining Ether ETFs recorded no net flows.

Solana ETFs also reversed Tuesday’s outflow dynamic. After Tuesday’s withdrawals of about $700,000, the funds attracted $11.2 million on Wednesday. That brought their combined two-session total to $10.5 million in net inflows, with all Wednesday inflows going to Bitwise’s BSOL.

Not every Solana-related product participated in the broader rebound, however. Hyperliquid ETFs recorded net outflows for a second consecutive session, losing $5.3 million on Wednesday after $13 million in Tuesday outflows. Those redemptions pushed the week’s total outflow for Hyperliquid ETFs to $18.3 million.

Price backdrop: crypto trades modestly lower as ETF flows diverge

The mixed ETF results arrived while spot crypto prices were slightly down versus the earlier timeframe referenced in the report. Bitcoin traded near $78,000 on Thursday, down from roughly $79,700 when the earlier three-week inflow figures were reported. Ether was around $2,470 and Solana hovered near $101, according to CoinGecko.

This combination—ETF outflows for Bitcoin paired with renewed inflows for Ether and Solana—reinforces that investor behavior is not moving in a single direction across the market. For readers monitoring fund flows as a sentiment barometer, the key is to track whether Wednesday’s withdrawals represent a one-off repositioning or the start of a more sustained trend.

As trading continues through the remainder of the week, the next sign to watch is whether Bitcoin ETFs can stabilize after two consecutive outflow days, and whether Ether’s Wednesday inflow follow-through persists into subsequent sessions alongside Solana’s rebound.